TIGA welcomes 25 per cent Games Tax Relief

TIGA, the trade associationrepresenting the UK games industry, said today that the commitment to introduce
a 25 per cent tax relief for video games development, animation and high end television
production would provide a powerful boost to the creative industries.

TIGA also
hailed the decision to provide match funding for training and development for
the creative industries, but emphasised that resources needed to be allocated
to management and leadership development and not simply to workforce training. TIGA
made the comments in response to the Chancellor’s Autumn Statement in the House
of Commons.

Dr Richard Wilson, CEO of TIGA, said: “Tax breaks for games production will ensure that the UK remains a world leader in
the high technology video games development industry. A single 25 per cent
level of relief will be simple to administer and economically impactful. Yet we
will have to monitor the actions of our competitors: the province of Quebec in
Canada already boasts a 37.5 per cent level of tax relief.

“Tax breaks for the
creative industries will boost production in games development, animation and
high end tv production. They will contribute to a rebalancing of the UK economy
away from an over-reliance on public sector employment and financial services
towards highly skilled, export focused industries.”

“The provision of
match funding for training and development in the creative industries could
enhance productivity. It could also help to promote more sustainable companies,
particularly if managers from small and medium-sized enterprises can draw on
the funds to develop the vital business and strategic skills necessary for
achieving sustained growth.”

TIGA
research has previously indicated that Games Tax Relief should
generate and safeguard: 4,661 direct and indirect jobs; £188 million in
investment expenditure by studios; increase the games development sector’s
contribution to UK GDP by £283 million; generate £172 million in new and
protected tax receipts to HM Treasury, and could cost just £96 million over
five years.

Jason
Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said: “TIGA’s
aim is to strengthen the UK games industry and secure an effective Games Tax
Relief. TIGA welcomes the decision to introduce a 25 per
cent level of relief Today’s measures will support the creative industries and are
good for the wider economy.”

TIGA also welcomed the following measures in the
Autumn Statement:A reduction in the main
corporation tax to 21 per cent in April 2014Measures to promote
ultra-fast broadband for cities including Brighton, Cambridge and Oxford, where
clusters of games developers are based£600 million science
research spending TIGA added that the increase in capital expenditure by
£5 billion and the increase in allowances for investment in plant and machinery
was sensible.

The growth in UKTI’s resources by 25 per cent per annum could
help to support exporters. However, TIGA stressed that UKTI should use its
Trade Access Programme scheme more flexibly: rather than simply giving grants
to developers to exhibit at overseas tradeshows it should also assist exporters
with their travel costs. This would enable many smaller games businesses to
attend overseas shows and boost their ability to export.

Notes to editors:About TIGA:

TIGA is the trade association representing the UK’s
games industry. The majority of our members are either independent games
developers or in-house publisher owned developers. We also have games
publishers, outsourcing companies, technology
businesses and universities amongst our membership. Since 2010, TIGA has won 14 business awards and has been nominated a
finalist for 16 other awards. TIGA's
vision is to make the UK the best place in the world to do games
business.

We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members. This means that TIGA members are
effectively represented in the corridors of power, their voice is heard in the
media and they receive benefits that make a material difference to their
businesses, including a reduction in costs and improved commercial
opportunities.